Timely Appraisal Services can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when buying a house. Considering the risk for the lender is generally only the remainder between the home value and the sum remaining on the loan, the 20% provides a nice buffer against the costs of foreclosure, reselling the home, and regular value fluctuationsin the event a purchaser is unable to pay. Banks were working with down payments as low as 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the added risk of the low down payment with Private Mortgage Insurance or PMI. PMI protects the lender if a borrower defaults on the loan and the value of the house is lower than the loan balance. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible, PMI is costly to a borrower. It's profitable for the lender because they secure the money, and they receive payment if the borrower doesn't pay, contradictory to a piggyback loan where the lender consumes all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can homebuyers refrain from bearing the expense of PMI?The Homeowners Protection Act of 1998 makes the lenders on most loans to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Wise homeowners can get off the hook ahead of time. The law guarantees that, at the request of the homeowner, the PMI must be dropped when the principal amount equals only 80 percent. Considering it can take many years to reach the point where the principal is just 20% of the initial amount of the loan, it's essential to know how your home has increased in value. After all, any appreciation you've gained over time counts towards dismissing PMI. So why should you pay it after your loan balance has fallen below the 80% mark? Your neighborhood might not be reflecting the national trends and/or your home might have gained equity before things settled down, so even when nationwide trends predict declining home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. As appraisers, it's our job to understand the market dynamics of our area. At Timely Appraisal Services, we know when property values have risen or declined. We're experts at identifying value trends in Quinlan, Hunt County and surrounding areas. Faced with figures from an appraiser, the mortgage company will most often do away with the PMI with little effort. At which time, the homeowner can retain the savings from that point on.
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